UK inflation lower than BoE`s expectation

The Consumer Price Inflation (CPI) grew by 1.2% in September, less than the target of 1.4% and the prior period`s 1.4% inflation growth.

The key points from the CPI report are:

• The Consumer Prices Index (CPI) grew by 1.2% in the year to September 2014, down from 1.5% in August.
• Falls in transport costs (notably sea fares and air fares) and prices for a range of recreational goods provided the largest contributions to the slowdown in the rate of inflation between August and September.
• Housing & household services (including utility bills) accounted for a third of the rate of inflation in the year to September. If falling food and motor fuel prices were excluded, the rate of inflation would be a third higher.
• CPIH (not a National Statistic) grew by 1.2% in the year to September 2014, down from 1.5% in August